Category Archives: Property Investment

Florida 14-Year-Old Buys House

Willow Tufano seems like an average 14-year-old girl. She likes animals and Lady Gaga, and hates algebra. There is something, however, that sets her apart from a normal teenager: the fact that she and her mother evenly split the cost to purchase a foreclosed house in Florida for $12,000.

Her mother Shannon became a real estate agent in 2005, during the housing market boom. Willow was often by her side, observing the investors who were pursuing cheap foreclosures. At one of these short sales, she asked the investor if she could sell the furniture and other belongings left behind in the house on Craigslist. He gave her the go-ahead, and she started building the capital that would go into the purchase of her home. After she’d done it for more and more houses, she was raking it about $500 a month, most of which she saved.

When Willow’s mother happened to mention a 2-bedroom, concrete-block house that was for sale for $12,000 to her husband in front of Willow, and Willow thought “What if I bought a house? That would be crazy.”

She discussed it with her mother, and they went forward with the unconventional idea and purchased the home. Although minors cannot legally own property in Florida until 18, Willow plans on buying out her mother for the rest of the house once she reaches that age. It wasn’t easy turning the foreclosed home into a rental, but they are now renting it out for $700 a month.

Willow says, “If there’s one thing I want people to know, it’s that your age does not matter. If I can inspire another person my age, younger, that would mean the world. Whether it’s buying a house, buying a car, or whatever. If you really work for it and put your mind to it you can do what you want to do.”

For her future, she explains that her interests lie more in investments than in her mother’s field of real estate. Though she can understand why others would prefer the social aspect of connecting with potential home-owners, she likes “[getting] to see a property that was a mess before and afterward see that it’s beautiful.”

Sources: NPR, Time, ABC News

Ongoing Controversy Surrounds Short Term Rentals

In recent years renting privately owned homes and properties in residential neighborhoods for vacations, business stays, or housing swaps has been a popular option in lieu of a hotel room. However, rental laws don’t always allow for these sorts of transactions but that hasn’t been stopping the practice.  Both the Denver Post and  the Aspen Daily News have posted stories in recent days about the problems associated with these short-term vacation rentals – and why they might soon be made legal.

The biggest complaints about short-term rentals so far range from neighbors angry over noise, overloaded parking, and trash, to local property managers and owners of inns, bed-and-breakfast sites, motels and hotels worried about the competition.

These short-term rentals can also be unfair to those local business owners because when a rental property flies under the legal radar they don’t have to pay taxes or meet safety codes.

The flip side to the debate centers around property owners’ rights to utilize their properties.

It’s a heated and complex debate only made more confusing by the popularity of short-term home rental websites and home swapping websites.

What are your thoughts on this issue? Do you think legalizing short-term rentals in Colorado is a benefit to neighborhoods, property owners, and local business?

Read more: http://www.denverpost.com/news/ci_18744003#ixzz1Vy5Wbs6x

Read more: http://www.aspendailynews.com/section/home/148699

Make Your Property Profitable!

After nearly three years of an economical draught,  The US economy is slowly recovering, and employment figures are showing promising signs. However, Americans are still feeling as though their pocket books are under pressure. When looking at ways to pump up finances, homeowners might want to consider their best asset – Their home.

This article, from Dailyfinance.com, says that making money with one’s home does not mean using the equity in the home as a cash machine, but rather actually finding additional ways to generate income from the property.  All the ideas presented carry a common theme. This common theme is that some portion of the property will be rented out.

Dawn Kawamoto, of Dailyfinance.com says that depending on a person’s location, home owners can potentially make “$50 a month to upwards of $5,000” (Kawamoto, “How to Turn Your Home into an Income Property”). It would also be wise of the home owner to thoroughly examine “their plans with their insurance broker, check their city and county ordinances — especially in areas with rent control — and potentially have a real estate attorney weigh in on the matter if the arrangement with the tenant will be long term.”
“”Because you are now considered a landlord, you may be liable if a tenant is injured on the property,”   said Loretta Worters, vice president of the trade association Insurance Information Institute, in an email  interview. “Therefore, you may need to purchase landlord insurance. Most landlord insurance policies  cover the landlord’s legal fees should a tenant file a lawsuit. This type of policy would also pay out in     the event of a judgment against a landlord, protecting his or her personal belongings and assets, if the tenant prevails in court.” She noted most typical homeowners insurance policies would not cover such  events.”

The following are links to some different ways to make some money from your property:

* Renting out the backyard to campers or gardeners

*Renting out the driveway or garage for cars or storage

*Renting out a slice of land for a cellular tower

Read more at http://www.dailyfinance.com/2011/04/18/how-to-turn-your-home-into-an-income-property/

Thanks for reading our blog! We hope you find this information useful!

Denver Metro Residential Vacancy Rates

It would seem to me that the vacancy rate would somewhat mirror the unemployment rate. If you lose your job, you probably will not be able to afford rent. Right? That certainly was my thinking. We were bracing for a 9 % to 10 % vacancy rate, which would certainly lead to a further decline in rental rates. Being that rental rates had already begun to deteriorate in 2009, that was not the best news for our clients or for us.

Up until about 9 months ago, the vacancy rate seemed to be trending in that direction.  Tenants that lost their jobs were moving back in with family or friends. Our vacancy rate was starting to inch up a bit, and then by mid summer it all seemed to change.

We are currently sitting at a vacancy rate of just over 3%. What we have learned is that you can do without a car, and even a job, but you must have a place to live. We have quite a few tenants and clients for that matter that are unemployed, but they are still paying their rent. How is that possible? Cashing out stocks, spending savings, help from family/friends, charities and unemployment are just a few options to mention.

Another statistic that seems contrary to the basic laws of supply and demand is the 3% vacancy rate. In our experience, when the vacancy rate was around 5% or lower, we would start to see upward pressure on rents. Less supply, higher rental rates right? Not exactly. Rental rates certainly seem to be leveling off, but to date no real increase to speak of.

Tenants are more realistic and quite frankly more savvy than in the past and are no longer willing to get themselves into a bad financial situation. Even if they are gainfully  employed, there is still a pervasive feeling of fear regarding the economy. That said, to date we are not seeing an increase in rents, but as I stated previously, they have begun to level off.

5 Easy Ways to “Fall” Proof Your Home!

Now that summer has gone and fall is upon us, it is time to start gearing up for colder temperatures. After reviewing various DIY websites the top 5 things you can do to get your home ready for fall are these:

1. Cover up or store patio furniture to protect it from the damage of strong weather.

2. Prepare your garden for colder temperature by mulching flower beds and bringing container plants inside to protect them from freezing.

3. Clean out your gutters.

4. Seal any cracks in between windows and doors to avoid losing heat.

5. Have your fireplace cleaned. “Not having your chimney clean before winter use increases the chance of chimney fires due to the buildup of creosote and soot.”

Mavi Unlimited Can Help You!

What do Property Managers do?

Property Managers provide the necessary tools to build, repair, and maintain a residential or commercial unit for rent. One of the most important aspects is providing a liaison between the owner and tenant.  Other faucets include  managing the accounts and finances of the real estate properties, and participating in or initiating litigation with tenants, contractors and insurance agencies.

Mavi Unlimited is dedicated to helping you with your investment! www.maviunlimited.com

Denver Housing Market = “Most Improved”

According to a recent report from Bloomerg Businessweek, Denver has earned a spot as the “most improved U.S. housing market.” Jim Nussbaum, a broker associate for Kentwood Real Estate in Greenwood Village states, “We never went up as fast in terms of value, and we never came down as fast. Last year, [buyers] were like deer in headlights—they were afraid to move. When the stock market improved, they started to feel better.”

The article also attributes Denver’s improved housing market to “an influx of renewable energy companies” which are creating new jobs.

Click here to read more.


The 1970′s Called… Their Mortgage Rates are Here!

If you missed out on the $8,000 home tax credit, don’t worry, here is another great opportunity!

According to Denver Real Estate Agents and Finance Guru’s, mortgage rates have hit a record low.  According to the mortgage company,  Freddie Mac,  “The average rate for 30-year fixed- rate loans dropped to 4.69 percent, from 4.75 percent last week.” Rates have not been this low since 1971!

Mortgage rates have dropped because of several reasons. One being the “turmoil in the stock market and the European debt crisis” (read more) and the second Margaret Jackson of the Denver Post explains that “Mortgage rates have fallen over the past two months as nervous investors have shifted money into the safety of Treasury bonds. The demand for Treasurys has caused Treasury yields to fall. And mortgage rates tend to track the yields on long-term Treasurys” (read more).

Experts are saying now is the time to buy because when the economy starts to show “sustained improvement” you can count on rates going up!

Summer Home Improvements

Summer is finally here! That means it is time to gear up for the heat and for some of us it means getting the ball rolling  on home improvement projects! As with any topic, everyone has their own opinion about the most important home improvement project you can do to your home.

1. Paint! Painting the inside/outside of your home makes it look cleaner and brighter!

2. Get in the Dirt! Landscaping is a fun and easy way to bring color and life to your home while adding to the value!

3. Replace Old with the New! The kitchen and the bathroom are considered the 2 most important rooms in the house. Replacing the flooring, cabinets, wall/ceiling fixtures, or paint can make a great difference!

4. Have a garage sale! Cleanse your house of unwanted/unused items! You will gain space and hopefully some extra cash!

5. Get with the Green! Energy Star appliances save money! If you are not looking to replace any major appliances it is easy to make sure the doors and windows in your home are sealed properly so the cool air stays in and the hot air stays out!

Whatever you decide to do this summer, enjoy it while you can!